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1 Notes from Visit to Danvers State Hospital on May 27, 2013, Discussions with Jeff Rhuda, Business Development Manager, Symes

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1 Notes from Visit to Danvers State Hospital on May 27, 2013, Discussions with Jeff Rhuda, Business Development Manager, Symes Notes from Visit to Danvers State Hospital on May 27, 2013, Discussions with Jeff Rhuda, Business Development Manager, Symes; 978-815-0129, [email protected], by Gil Rodgers and Ros Smythe1 Summary Ros Symthe and I visited the former Danvers State Hospital on a beautiful, warm, sunny day in May 2013. The former Danvers State Hospital is located on top of Hathorne Hill at 1101 Kirkbride Drive, Danvers -- a few miles from Rt. 95. We walked around the facility, talked to the receptionist at the main office in the famous and elegantly restored Kirkbridge Building, and met with Jeff Rhuda, Business Development Manager of Aria at Hathorne Hill. The former hospital opened in the late 1800s and at its peak housed 3,000 mentally ill patients. The restored building and new construction occupies 77 acres of the total land for the former hospital that covered almost 500 acres. Site Development2 The property was initially sold in 2001 to Archstone Developers who proposed a mix of homes and office space for the hospital site. They had planned to preserve the central building of the state hospital, the former administration building, and two adjoining wings; however with the costs associated with the preservation and the market downturn, the developers pulled out of the project. Three years later the site was sold to AvalonBay Communities for 18.1 million dollars and in 2006 they embarked on one of the largest state hospital reuses. They spent over 1 Notes prepared by Gil Rodgers. 2 Metropolitan Area Planning Council (MAPC), http://ma-smartgrowth.org/wp- content/uploads/Danvers_Avalon.pdf 1 $80 million dollars on the largest product ever undertaken, and the end product was 497 units, including market rate and affordable apartment units as well as an adjacent condominium com- munity by a different developer, Aria. When the enabling state legislation was passed in 19973, the bill required the property to allocate a portion of the development for employment, housing and job training for the mentally ill as well as provide affordable housing. This was to ensure that the legacy of the facility and who it served would still live on after its redevelopment. Many felt like this compromise would allow the original purpose of the facility not be forgotten. In conjunction with the state legislation, 20% of the housing were set aside for people ages 55 and older, and 15% of the apartments were set aside as affordable housing units. In addition to the development, AvalonBay was extremely generous and donated $1 million for Danvers’ education system and $500,000 to both affordable housing and historic preservation in the town. The development is now 95 percent leased and 90 percent occupied. Development Process4 Before the state legislation was passed, the Danvers State Hospital Re-Use Committee worked closely with the planning board and the community to come up with alternative ways to reuse and rezone the existing site for redevelopment. The original committee never envisioned the site to be zoned solely for residential development, but rather for commercial office space. The final and revised plan that took into consideration concerns of the town residents and officials was to rezone the whole site as the Hathorne West District, which would allow for a diverse array of mix use developments on the site. The new plan allowed for residences and special care facilities for elderly as well as hospital and health care facilities, service businesses and re- search labs. Offices, commercial space and residential developments would be allowed by special permit only. To help calm density concerns, the plan reduced the amount of density on the site. The existing zoning stated that the gross floor area ratio and the size of the development should not exceed 33 percent; however the revised plan proposed to reduce that level to 20 percent on site. In addition to the Avalon Danvers residential component, the Beverly Hills Hospital was also built on site. The Town of Danvers, along with the State and developers have worked very closely to ensure the success of this district to both reap the benefits of boosting the tax revenue and creating jobs for the town of Danvers, but also improving the quality of life for its citizens, who have tremendously benefited from the infusion of mixed use development in this area. Comments The result was AvalonBay buying the entire property and restoring at great expense the Kirkland Building and adjacent wings saving the exterior walls but gutting the interior spaces. Archstone, the original buyer, dropped out of the project and sold to AvalonBay because of the enormous public backlash against tearing down this iconic building. There are now four hundred and ninety seven (497) primarily one- and two- bedroom apartments and a few three bedroom apartments in this huge complex, many in new buildings with designs attempting to mimic and blend in with the original Kirkbride building.5 Current rental rates for apartments in the summer of 2013 were: one bedroom $1370/mo, two bedrooms $1750/mo, and three bedrooms 3 See Appendix A 4 Ibid., MAPC 5 See photos below. 2 $2105/mo. The buildings are rented out at 97% occupancy rate and only a few units were available at the time of our visit.6 In addition, OHC Development, a different developer, undertook a joint venture with AvalonBay to build 64 condominiums in 15 separate buildings on a patch of Hathorne Hill. Some buildings have as many as eight individual units. ODC went bankrupt and Symes Associates, a highly respected residential developer recently took over the project working to complete construction and start marketing condos priced in the $350 – 479 thousand range. (Some future larger units will be sold in the upper $500 thousands.) We met with Jeffrey Rhuda (who is a third cousin of Paul Rhuda but with no close relationship) and walked through one of the condos on display. Jeff says that they are selling well and are closing at a rate of about one a week now that construction is completed. Our overall impression was this once beautiful setting had been converted into a sterile, overdeveloped housing complex, with little opportunities or encouragement for resident interaction or recreation -- in contrast to Foxborough State Hospital. The small outdoor swimming pool was empty despite this being a warm, early summer day, a café in the Administration Building that was in promotional materials was not open (although this was lunch time,) and the limited recreational facilities (basketball count and a pool table) were unoccupied. There was no inside parking for apartment occupants, but parking spaces were spread in front of and between all the buildings. The absence of convenient sidewalks required walking in the roads to get around; we could only imagine what it would be like getting to your car after a heavy snow storm and snow banks piled up around your vehicle. We came away very disillusioned and disappointed. A check with apartment rental comment sites reinforced these personal impressions and the disgust and outrage from some of the unhappy renters after the project initially opened in 2008 - 2011. (See excerpts in Appendix B.) 6 The key people at AvalonBay are: Bill McLaughlin (617-654-9501; [email protected]) and Scott Dale (617-654-9500; [email protected]). We have not made any direct contact with anyone at AvalonBay but include these for future reference. 3 Avalon Danvers Restored buildings in inner court of Avalon Danvers Restored Kirkbride Building at Danvers State Hospital 497 1, 2, and 3 bedroom apartments at Avalon Danvers 4 Aria at Hathorne Hill, Danvers Entrance of one of the condominiums. View of one of the 15 condominium buildings at Danvers State Hospital 5 APPENDIX A CHAPTER 180 AN ACT RELATIVE TO CERTAIN STATE LAND IN THE TOWN OF DANVERS. PREVNEXT Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows: SECTION 1. Chapter 52 of the acts of 1993 is hereby amended by striking out section 7 and inserting in place thereof the following section:- Section 7. The commissioner of capital planning and operations is hereby authorized, subject to the provisions of sections 40E to 40J, inclusive, of chapter 7 of the General Laws, to lease for a term of up to 30 years plus two extensions of 30 years each to an individual or entity, a parcel of land not exceeding 7.89 acres in size to be identified by said commissioner within the boundaries of the Danvers State Hospital. Such lease shall be in accordance with such terms and conditions as the commissioner shall prescribe; provided, however, that the property shall be used primarily for the purpose of providing alcohol and drug detoxification programs and related public health programs for the department of public health; and provided further, that all interests in said property shall revert to the commonwealth in the event that said property ceases to be used for such purpose. The commissioner is hereby authorized to enter into negotiations with the lessee under said lease for the purchase by said lessee of such land, and to sell such land to said lessee upon such terms and conditions as the commissioner may prescribe. SECTION 2. As used in this section and sections 3 to 16, inclusive, the following words shall, except as otherwise provided, have the following meanings unless the context clearly requires otherwise:- "Commissioner", the commissioner of capital planning and operations. "Committee", the Danvers State Hospital reuse task force committee or its successor organization. "Danvers State Hospital disposition site", site and property, the approximately 150 acres of state owned land, including the buildings and other improvements thereon and more particularly described as Area A on the plan.
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